Booked and cancelled after 20 hours... Hotel claims to have a penalty. They stand ground and interpret the rules differently:

"As per your email, it is clearly explained that if the reservation is cancelled even a day after booking no refund applies:
" prepay in full, non-refundable if cancelled more than 1 day after booking"

As per the below and the cancellation policy of your booking, the hotel reserves the right to hold the deposit of one night as cancellation fee. "